Asset Management & Recovery: Loan Sales Unsuccessful - Now REO ?

Gryphon USA, Ltd services clients through Gryphon Asset Management, Gryphon Realty Advisors and Gryphon Auction Group. Gryphon Asset Management manages operating entities and undertakes liquidation management in numerous business lines. Gryphon Realty Advisors is comprised of three divisions all working together; Residential, Commercial and Management. Projects range from single family investments and owner occupant reresentation to apartments and commercial complex disposition. Gryphon Auction Group assists clients with the sale of real property as well as commercial equipment.

Loan Sales Unsuccessful - Now REO ?

Recently a couple of my bank clients have been attempting to sell their default loan portfolios to groups of investors.  Many of these portfolios are in the 3-8 million range.  The assets are mostly vacant, mostly former rental properties either single family, double or four-plex.  Most loans were originated 12-24 months ago. A majority were 90+ late with only about 20% or so less than 90.  All are located in Columbus Ohio or Dayton.

Sellers were hoping for offers close to 60% of loan balance.  What they received were offers going from 18% to 27%.  Maybe the offering wasn't promoted aggressively?

I don't know why I am surprised, but I am.  The offers were not accepted although I think the parties are still negotiating.  With that big of a spread I'm not sure where that will go.

Wonder what these properties are going to eventually be worth when I get them as REO?

Soon to be listed on www.gryphonreo.com, another 50 ++ properties.  Come n git em !!!

 

Do you have questions about distressed assets, receivership or bankruptcy sales, auctions?  Email me at rfk@gryphonusa.com and I'll try to answer it in an upcoming post.

Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com).  The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Gryphon Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast. 

United Country Gryphon Realty & Auction Career Opportunities Available.  Call 614-885-0020 x 17

5 comments • Rich Kruse • November 03 2007 07:40AM

Comments

Seems to be running a similar course everywhere.

Connor MacIVOR

Posted by Paris MacIvor of Paris911.com (REMAX of Valencia CA) over 4 years ago
Wow, that is a bad drop.  Hopefully things will pick up in the spring in your area!
Posted by David & Lisa Webber, www.webberteam.com (RE/MAX Executive) over 4 years ago
I'm really not surprised either. In my experience, the banks have always been the most difficult party to work with. They want everything their way and are incapable of compromising. Compromise is the cornerstone for negotiation. It's the only way to accomplish a successful transaction.
Posted by Lisa Hill (Daytona Beach Real Estate) (Florida Property Experts) over 4 years ago
Are the HUD or urban revitalizatin properties?
Posted by Paul Moye, Broker, ABR, GRI, SFR (Benchmark Realty) over 4 years ago
Not surprised thats what we paid in the early 90's thru 2000 until the wall street boys came in.  I have been getting recruited by the private equity groups again, they are talking about numbers around 40-50%.  See what happens, my first offer was for crazy money, well see if they actually buy something.
Posted by Jeffrey Dolfinger, NRBA Member (24/7 Realty Inc.) over 4 years ago

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